Computing interest rates by using irp concept

Assignment Help Finance Basics

Reference no: EM1333394

Assume that Interest Rate Parity holds. The spot rate for the Euro is $1.20 and the one year forward rate is $1.23. The annual rate of interest in Germany on annual deposits is 2.439%. What is the annual rate of interest on deposits in the United States?

Reference no: EM1333394

Questions Cloud

In-group favoritism play a role in decision : Could in-group favoritism play a role in this decision? If you were the CEO, what decision would you have made?

Actions (internal and external)recommended to dracca : What actions (internal and external) do you recommend to Dracca to remedy the ethical and legal considerations of this scenario? Be specific and detailed, and be sure to base recommendations on relevant legal and ethical principles.

Compute fousts after-tax cost of new debt : Compute Foust's after-tax cost of new debt and common equity. Calculate the cost of equity.

Explaining enron and arthur andersen relationship : Research the subject of the Enron and Arthur Andersen relationship. Discuss your findings in terms of the application of ethics in the various decisions made by the Enron and Arthur Andersen teams.

Computing interest rates by using irp concept : Suppose that Interest Rate Parity holds. The spot rate for Euro is $1.20 and the one year forward rate is $1.23. Find out the annual rate of interest on deposits in United States?

Explain the things that real estate agents can accomplish : Explain the things that real estate agents can best accomplish through their Web sites, and personal contact.

Elucidate the one thing regarding the role : Elucidate the one thing, regarding the role of the government that separates classical economic theories and Keynesian economic theory.

Gdp-fiscal and monetary policy : Describe and discuss the concepts of federal deficit and the national debt. How statistically significant are they for the United States as compared to other countries? Discuss how the deficits and debt arise.

A new column would be added to the table : A table was created, Whse.IStock. This table contains a column, SKU that holds stock numbers. The SKU column was created as a data type char(20) and right-justified the stock numbers with leading blanks.

User Account

All Pages